Tuesday, July 14, 2009

Gross Receipts on Schedule C?

I am putting this in this category as well for more answers before I input my information into my tax program.





****I am an independant contractor and this is my first year filing for my business.





I received a form 1099-misc from the company I did work for, and I have income under box 7 "non-employee compensation".





I keep getting an error when I e-file my return in regards to the Gross Receipts portion on Schedule C cannot be left blank or zero...but I don't know what the Gross Receipts are.





Can anyone clarify for me in "laymen's terms"?





I'm just not getting it and the tax preparer site I'm using is either vague, or I'm just too tired to "get it" right now. haha





Thanks!***





Also, someone did answer in the other category and said that gross receipts meant put in my income there.





Does this mean my business only income, or the business income plus the W-2's from my husband and my other jobs?





Thanks again!

Gross Receipts on Schedule C?
Gross receipts is the total amount you received in compensation as reflected on the Form 1099. You should also include other money paid to you for your services for which you may NOT have received a 1099.
Reply:Your earnings as an independent contractor would go on the Gross Receipts line on Schedule C or C-EZ.





W-2 income would go on Line 7 of Form 1040.
Reply:The answer given by Jwishz is correct.





I would add that it sounds like you're in over your head at this point, and I would recommend having your taxes prepared by a professional (note: not a storefront tax prep company) this year. Even if not much money is made, returns for self-employed individuals can be much more complicated than those who get their incomes solely from W2s.


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